"Mandip Singh, owner of the readymade garment factory in Sharma Palace on local railway road, was arrested last night," City Station House Officer (SHO) Balbir Singh said.
The 22-year-old dalit woman had alleged that she was beaten, drugged, and gangraped in the factory by four persons on July 29, including the owner Mandip Singh while a woman colleague was party to the conspiracy hatched by them.
Mandip Singh and three others, two of them identified as Kuldip and Baba, were booked for rape, criminal intimidation and causing hurt after the victim recorded her statement on August 2.
A woman colleague of the victim, working in the same factory, was also booked for hatching conspiracy.
Raids are being conducted to arrest the other accused, Singh said.
Following the incident, dalit activists had resorted to a violent protest here on August 16 demanding the arrest of the accused.
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